Statement 1: Under IFRS 15, if the warranty is base on agreed-upon specifications, warranty expense is recognize in the period in which the expenditure is done. Statement 2: Under IFRS 15, if warranties provide service other than agreed-upon specifications ( the customer has the option to buy the warranty separately), the warranty is accounted for as a distinct service and is considered a separate performance obligation. Both statements are correct. None of the statements is correct. Only statement 1 is correct. Only statement 2 is correct.
Statement 1: Under IFRS 15, if the warranty is base on agreed-upon specifications, warranty expense is recognize in the period in which the expenditure is done. Statement 2: Under IFRS 15, if warranties provide service other than agreed-upon specifications ( the customer has the option to buy the warranty separately), the warranty is accounted for as a distinct service and is considered a separate performance obligation. Both statements are correct. None of the statements is correct. Only statement 1 is correct. Only statement 2 is correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Statement 1: Under IFRS 15, if the warranty is base on agreed-upon specifications, warranty expense is recognize in the period in which the expenditure is done.
Statement 2: Under IFRS 15, if warranties provide service other than agreed-upon specifications ( the customer has the option to buy the warranty separately), the warranty is accounted for as a distinct service and is considered a separate performance obligation.
Statement 2: Under IFRS 15, if warranties provide service other than agreed-upon specifications ( the customer has the option to buy the warranty separately), the warranty is accounted for as a distinct service and is considered a separate performance obligation.
Both statements are correct.
None of the statements is correct.
Only statement 1 is correct.
Only statement 2 is correct.
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